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Information Technology Agreement

This presentation briefing by Rogers Baguma, Chairman of PiCTA, outlines the implications of the Information Technology Agreement (ITA) for Kenya, Uganda, and Rwanda as part of a project initiated by the ECA Hub to evaluate the impact of these countries' accession to the ITA. Launched in September 2004, the project's goal is to analyze trade policy effects on the ICT sector and overall economic growth. This briefing includes insights on tariff reductions, benefits of ICT, and the potential economic implications for the three participating nations.

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Information Technology Agreement

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  1. Information Technology Agreement Implications for Kenya, Uganda & Rwanda Presentation Briefing to the WITSA Public Policy Meeting by Rogers Baguma Chairman PiCTA, Uganda

  2. About this Project • Assist 3 COMESA countries in analyzing impact of accession to the ITA • Project is an initiative of the ECA Hub • Project commenced September 1,2004 • Project completion with draft final report by end Oct 2004 • 3 countries selected are Kenya, Uganda and Rwanda

  3. ECA Competitiveness Hub • East & Central Africa (ECA) hub is supported by USAID • Located in Nairobi, Kenya • ECA Hub has 4 main programs • Trade Policy / Capacity Building • AGOA • Customs • Transport • COMESA is a partner of the ECA Hub

  4. About the ITA • Concluded at the WTO’s Ministerial Conference in Dec 1996, in Singapore • Required participation by countries accounting for 90% of World IT trade to go into effect • 1st staged reduction of tariffs occurred 7/1/1997

  5. ITA’s Key Considerations • Role of trade in IT products in the development of information industries and in the dynamic expansion of the world economy • Recognizing goals of raising standards of living and expanding the production of and trade in goods • Desiring to achieve maximum freedom of world trade in IT products; • Desiring to encourage the combined technological development of the IT industry on a world-wide basis • Mindful of the positive contribution IT makes to global economic growth and welfare

  6. ITA Provisions • All products listed in the agreement must be reduced to zero tariff level • Duty elimination is on the MFN basis • Agreement provides for review of non-tariff barriers, but no binding commitments • Possible for extended implementation period for sensitive items

  7. ITA Participants • 63 signatories • 3 African Countries : Egypt, Mauritius and Morocco • 15 Lower Income Developing Countries

  8. Lower Income Parties to ITA • Albania, Bulgaria, China • Egypt, El Salvador, Georgia • India, Indonesia, Jordan • Kyrgyz Republic, Moldova, Morocco • Philippines, Romania, Thailand

  9. Benefits of ICT • One of the most rapidly growing economic sector in many countries • A Major driver in most sectors especially: • Medicine • Education • Tourism • Government • e-Commerce • Banking and Finance

  10. African Signatories & Non-Signatories

  11. Selected Lower Income Signatories & Non-Signatories

  12. Study Methodology • Using local in-country consultants • Kenya : Ms Margaret Chemengich • Uganda: Rogers Baguma • Rwanda:Who is the consultant? • Review of background literature on ICT Impact, Policy, investment, imports and exports (trade statistics), taxation & Revenue, etc • Interview of at least 20 key persons in the ICT industry, public and private sector officials • Data analysis • Impact analysis (On Producers, Users, Govt Revenue & Growth) • Comparative review with best practices • Draft report( may be combined for the 3 countries) due by Mid Oct 2004 • Presentation of final draft to key stakeholders for validation

  13. Possible Implications • Impact on government revenue from eliminating duties on IT products • need to consider both static and dynamic effects • Impact on Competitiveness of Producers of IT Products • Impact on general society

  14. UGANDA Zero Tariff (2nd year)on select IT Products only Computers Software Teledensity: (mobile + fixed tele lines)=3.308 GDP (contribution by ICT)1.4% No. of ISPs……18 No. of Mobile Subs….abt.1mio ICT Policy …….Yes Rural Comm Devpt….Yes Local ICT Manufacture…minimal KENYA Facts under review Country Situation on ICT • RWANDA • Facts under review

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